Make The World
More Sustainable[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

September 17, 2024
IssuerIchigo Hotel REIT Investment Corporation (“Ichigo Hotel,” 3463)
2-6-1 Marunouchi, Chiyoda-ku, Tokyo
Representative: Eriko Ishii, Executive Director
www.ichigo-hotel.co.jp/en
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Hiroshi Iwai, President
Inquiries: Hidehito Iwasaka, Head of Ichigo Hotel
Tel: +81-3-4485-5232
Earnings Forecast Revision for the January 2025 Fiscal Period
Ichigo Hotel is revising its earnings forecast for the January 2025 fiscal periodannounced in the July 31, 2024 release “Upward Earnings Forecast Revision for theJanuary 2025 Fiscal Period.”
1. January 2025 Earnings Forecast Revision
Operating
Revenue

Operating
ProfitRecurring
Profit

4,607

2,927

2,587

2,586

7,899

4,564

3,277

2,951

2,950

9,009

-42+349

+363

+363

+1,110% Change-0.9%+12.0%+14.0%+14.0%+14.1%

Reference:January 2024

2,282

1,250

975

974

2,976

Previous
Forecast (A)New Forecast(B)Difference(B) - (A)Net
Income(JPY million)
Dividendper Share(JPY)

Reference: Net Income per Share: JPY 9,009
Period-end number of shares outstanding: 327,489 shares
Note: The new forecast is based on the “Preconditions for the January 2025 Earnings
Forecast” on page 3. Actual results may vary due to changes in circumstances, so theseforecasts should not be construed as a guarantee of such results. Ichigo Hotel will
make a forecast revision should a material discrepancy emerge between this forecastand results.
The forecast assumes that Proposal 3. Amendment to the Articles of Incorporation(AOI) is approved at the Sixth Shareholder Meeting to be held on October 26, 2024.

12. January 2025 Earnings Forecast Revision Rationale
As announced in today’s release “Proposed Amendments to Articles of Incorporation,Director Candidates, Director Compensation, and Independent Auditor Candidate forShareholder Approval at Sixth Shareholder Meeting,” upon approval of Proposal 3.
Amendment to the Articles of Incorporation (AOI) at the Sixth Shareholder Meetingon October 26, 2024, the Gains on Sale Performance Fee will decrease if dividend
increases as a result of gains on sales.
The amendment will be effective as of October 26, 2024, and the Gains on Sale
Performance Fee will decrease from the sale of the Nest Hotel Sapporo Ekimae,
announced in the July 31, 2024 release “Hotel Sale (Nest Hotel Sapporo Ekimae)” tobe completed on December 25, 2024. In addition, as a result of the hotel sale, Ichigo
Hotel will record an expense of non-deductible consumption tax.
Furthermore, although inbound demand remains strong, domestic business and leisuredemand is expected to be stagnant in certain areas, and variable rent is forecast todecrease at some hotels.
As a result, Ichigo Hotel is revising its January 2025 operating revenue, operating
profit, recurring profit, net income, and dividend by -JPY 42 million (-0.9%), +JPY
349 million (+12.0%), +JPY 363 million (+14.0%), +JPY 363 million (+14.0%), and+JPY 1,110 (+14.1%), respectively, versus the forecast announced in the July 31, 2024
release “Upward Earnings Forecast Revision for the January 2025 Fiscal Period.”

2Preconditions for the January 2025 Earnings Forecast
Preconditions
PeriodNumber ofHotels

 August 1, 2024 to January 31, 2025 (184 days) 30 hotels (29 hotels after the sale of Nest Hotel Sapporo Ekimae on
December 25, 2024)
Within operating revenue, rental income is forecast based on current lease
contracts, taking into consideration such factors as hotel and market
conditions.1
Forecast Operating Performance2

3

Occupancy
ADR4

January 2025 Fiscal Period
85.9%
JPY 9,296

1OperatingRevenue

The forecast rental income assumes operators and tenants will fully pay
their contractual rents without delay or default.
2The 22 variable rent hotels are: Smile Hotel Kyoto Shijo, Hotel Wing
International Nagoya, Nest Hotel Sapporo Ekimae, The OneFive Osaka
Sakaisuji, Hotel Wing International Kobe Shin Nagata Ekimae, Nest
Hotel Sapporo Odori, The OneFive Fukuoka Tenjin, Nest Hotel Osaka
Shinsaibashi, Smile Hotel Tokyo Asagaya, Nest Hotel Matsuyama, The
OneFive Okayama, Capsule Plus Yokohama, The OneFive Garden
Kurashiki, Nest Hotel Kumamoto, Valie Hotel Hiroshima, The OneFiveTokyo Shibuya, Smile Hotel Nagano, Comfort Hotel Osaka
Shinsaibashi, HOTEL THE KNOT YOKOKAMA, Quintessa Hotel Ise
Shima, Quintessa Hotel Ogaki, and THE KNOT SAPPORO. Data for
Capsule Plus Yokohama is excluded from the above forecast because
the operator did not give consent to disclose forecasts.
3
Occupancy is calculated with the following formula:
Occupancy = Total number of guest rooms occupied during the period /(total number of guest rooms * number of days hotel was in operation
during the period)
4
ADR or Average Daily Rate is calculated with the following formula:
ADR = Total sales from accommodation (excluding restaurant charges
and other service fees) / number of guest rooms occupied during theperiodDetails of the January 2025 Rental Income Forecast by Hotel(JPY million)
Hotel Name
Smile Hotel Kyoto Shijo
Nest Hotel Sapporo Ekimae
The OneFive Osaka Sakaisuji3

Fixed Rent/
Minimum Variable
Guaranteed Rent
Rent
32312873
1713Total
6410230

Comfort Hotel Hamamatsu
Nest Hotel Sapporo Odori
The OneFive Fukuoka Tenjin
Nest Hotel Osaka Shinsaibashi
Comfort Hotel Central International
AirportSmile Hotel Tokyo Asagaya
Nest Hotel Matsuyama
The OneFive Okayama
Comfort Hotel Kushiro
Comfort Hotel Suzuka
The OneFive Garden Kurashiki
Nest Hotel Kumamoto
Valie Hotel Hiroshima
The OneFive Tokyo Shibuya
Smile Hotel Nagano
Hotel Sunshine Utsunomiya
HOTEL THE KNOT YOKOHAMA
Quintessa Hotel Ise Shima
Quintessa Hotel Ogaki
THE KNOT SAPPORO
Other1
Total
155
2640
65

–54
1797

55
80
58
163

151

–

151

59
35
72
1815
47
27
27
44
764
70
20
15
66
284
1,296

71
49
8–––
47
1697
42–
75
42
1860
110
930

130
84
80
181547
74
44
142
50
64
14662341263952,226

Figures for Hotel Wing International Nagoya, Hotel Wing
International Kobe Shin Nagata Ekimae, Hotel Livemax NihombashiHakozaki, Capsule Plus Yokohama, Urbain Hiroshima Executive,
Washington Hotel Plaza Shimonoseki Eki Nishi, and Comfort Hotel
Osaka Shinsaibashi are included in “Other” because the hotel operators
did not provide consent to disclose hotel-specific data.

 Retail: JPY 105 million of rental income from retail tenants at The
OneFive Osaka Sakaisuji, Hotel Wing International Kobe Shin Nagata
Ekimae, Smile Hotel Tokyo Asagaya, Nest Hotel Kumamoto, HotelSunshine Utsunomiya, Comfort Hotel Osaka Shinsaibashi, HOTEL
THE KNOT YOKOHAMA, and THE KNOT SAPPORO.
 Gains on sale from the sale of Nest Hotel Sapporo Ekimae announced
in the July 31 2024 release “Hotel Sale (Nest Hotel Sapporo Ekimae)”:
JPY 2,181 million (an estimate, calculated as the Sale Price less Book
Value, IIA performance fee, and estimated sale expenses)

4OperatingExpenses

 Depreciation: JPY 465 million. Depreciation has been calculated using
the straight-line method.
 Property and city planning taxes: JPY 170 million.
 Building maintenance and repair expenses are based on what Ichigo
Investment Advisors, the asset management company of Ichigo Hotel,
estimates will be necessary for each hotel during the period. However,actual expenses for the period could differ significantly from these
forecast amounts for reasons including the variability of maintenanceand repair expenses, one-time costs due to unexpected building
damage, etc.
 Rental expenses, Ichigo Hotel’s principal operating expense (other thandepreciation, see above), are calculated based on historical data
adjusted for anticipated expense variations.
 Actual operating expenses may differ significantly from theseassumptions due to unforeseeable factors.
 SG&A expenses: JPY 358 million for asset management fee, JPY 22
million for appraisal report costs, and JPY 35 million for nondeductible consumption tax. However, the asset management fee
forecast assumes the shareholder approval of Proposal 3. Amendment
to the Articles of Incorporation (AOI) at the Sixth Shareholder Meetingon October 26, 2024.

Non-OperatingExpenses

 Interest expenses and other borrowing-related expenses: JPY 322
million Amortization of share issuance expenses: JPY 3 million

Borrowings

 Total borrowings: JPY 32.47 billion as of January 31, 2025

Number ofShares Total 327,489 shares The forecast assumes there will be no additional new shares issued
through January 31, 2025

Dividend The dividend forecast assumes that dividends will comply with thedividend distribution policy stipulated in Ichigo Hotel’s Articles ofIncorporation.
 The dividend is subject to change due to factors such as sales ofportfolio assets, changes in rental income associated with operator
turnover, the occurrence of unexpected maintenance and repair costs,
and fluctuations in interest rates.

Dividend in
Excess ofEarnings

 Ichigo Hotel does not plan on paying any Dividend in Excess ofEarnings.

Other This forecast assumes that there are no material revisions to laws andregulations, the tax system, accounting standards, listing rules of theTokyo Stock Exchange, and rules of the Investment Trusts Association,
Japan, and no material changes in the state of the economy and realestate market conditions.

5